The new Register of Overseas Entities (ROE) came into effect on 1 August 2022. It affects overseas entities who own, or who intend to buy, sell or transfer UK property or land.
The requirements apply to entities who purchased UK property or land on or after 1 January 1999, in England and Wales. In addition, those disposing of UK property or land after 28 February 2022 must also comply.
Those within scope of the rules must register with, and supply appropriately verified details of beneficial owners/managing officers to Companies House by 31 January 2023.
The registration process
The first step in the process is to appoint a UK-regulated agent; without one, you cannot fulfil the requirements.
We are an approved UK-regulated agent. This means we can assist you with verifying information, and submitting your application to Companies House.
Richard Dilley, Partner at George Hay, comments: “Our experience, so far, is that the registration itself is relatively quick, but obtaining sufficient documentation and information to satisfy the ID checks takes time. This step in the process relies on the client’s responsiveness.
“Entities needing to register can put their best foot forward by ensuring that they understand their ownership structure, have easy access to appropriate documentation – i.e., passport – and that they respond to any queries their agent may have in good time.”
What are the consequences for failing to register?
The consequences for non-compliance range from significant financial penalties and, potentially, prison sentences, to restrictions on buying, selling, transferring, leasing, or charging UK property.
This applies both where the entity fails to register initially, and where they fail to supply annual updates.
However, there may be an element of discretion in respect of the upcoming 31 January deadline.
“The truth is, we cannot say exactly what action Companies House will take, at this stage.
“However, in a recent blog, it has suggested that it will take into account whether or not the application process has been started, if not completed, by 31 January.
“That being said, entities caught by the new rules must not be complacent, particularly given that this obligation is not a one-off. The penalties and restrictions that are enforceable, should Companies House deem it appropriate, are extremely severe. Timely compliance really is the best course of action.”
Register of Overseas Entities UK-regulated agent
If the Register of Overseas Entities is causing you concern, we can support you for a fixed fee. If you are an overseas entity with an interest in UK property or land, contact us today to find out how we can help you.
